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| September 21, 1999 |
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Peter G. Miller
First hurricane Dennis, and now hurricane Floyd, have battered the East Coast this year while in the West fires have consumed hundreds of thousands of acres. There is little to make such events welcome, but at least most mortgage lenders are willing to help victims when Mother Nature runs amok.
Natural disasters strike with terrible regularity, and the damage can be overwhelming. I know, because ten years ago what had been a family beach house was decimated by hurricane Hugo.
Hurricanes are known for high winds and massive amounts of rain. But the greatest danger is the "storm surge," an astonishing wall of ocean water generated by a hurricane's wind and pressure. Moving at great speed and weighing billions of tons, such waves can quickly reshape coastal areas by creating new channels, eroding beaches, and destroying man-made structures.
While the beach house had been sold six months earlier and a replacement property built a mile inland, even the inland home felt Hugo's impact.
Sea water nearly a foot deep actually went under the inland house, not a structural problem because the home was built on deep pilings. However, the sea water soaked the ground with salt. In the end what was green turned brown across thousands of once-forested acres, while all around trees were blown over or actually sheared off by the storm's powerful winds.
In such disasters you always find heroic people -- the ambulance drivers, National Guard personal, the police officers, power company workers, and fire fighters, and others. And you always find a willingness to re-build, knowing that in time and with certainty nature will eventually return to uproot all which has been placed in her way.
Over the years -- and through innumerable disasters -- lenders have a evolved a series of protocols to help borrowers when such emergencies arise.. In general terms, homeowners are likely to find that most lenders (but not all) are willing to make one or more accommodations when disaster strikes.
The catch is that lender leniency is not automatic and should never be assumed. Some lenders allow no relief, but more commonly lenders offer forbearance on a case-by-case basis, which means it's the owner's job to contact the lender, explain what happened, and show actual damages. Photos, insurance claims, police reports, news clips, and other documents can all help.
What will a lender do for you when disaster strikes? Several options may be plausible.
For the most part, you're likely to find that lenders are sympathetic and helpful. After all, it's your home but it's the lender's security -- so the quicker you re-build the less risk there is of default.
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Question Of The Week
Q We want to buy a home and have a piano now owned by the sellers included in the deal. How can we do this?
A When you make your offer, include a requirement that upon acceptance the owners agree not only to sell the property, but also to sell the piano. It's then up to the owners to decide if they will accept your proposal, not accept it, or make a counter-offer.
For specific information, speak with your broker or an attorney, as appropriate.
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Floyd Brings Out Mortgage Relief 
Once a rustic structure on six private miles of Carolina beach, the home had five bedrooms, five baths, two kitchens, two living rooms, and a library until it was effectively dismantled when hit by 26-foot waves.